Interest rates will rise and fall, as is the nature of the financial market, and there is no one source who can predict the direction with certainty. But with interest rates so low, is there any point in comparing different mortgages anymore? The answer is yes, and here are just a few reasons why:
1. To understand fixed versus variable-rate mortgages. How do the rates and features compare?
2. If I choose the variable rate option, what restrictions should I look out for? Am I able to port my mortgage if I move? Will my payment increase when prime does? And what if I wanted to convert my variable rate to a fixed rate later? What discount would I get off the current posted rate?
3. Prepayment Options. How much extra can I apply toward my mortgage each year without penalty? When can I make these prepayments? Can I increase my ongoing payments?
4. Penalties. What if I need to break my mortgage – would I be charged a penalty and if so, how would it be calculated?
5. Porting. What if I decide to move up to a more expensive home – what restrictions do I need to be aware of? What if I decide to move down to a less expensive home – how would my existing mortgage be impacted?
Mortgage brokers provide helpful, no-obligation information well above and beyond just mortgage interest rates. Please call with all your questions today!